LONDON (AFX) - Chaco Resources PLC said it is proposing the reverse takeover
of two Paraguayan companies -- Amerisur SA and Bohemia SA -- from Candey SA and
Daniel Sztern in exchange for 27,322,404 new ordinary shares in the company.
It also plans to raise up to 750,000 stg before expenses in a placing of
36,585,365 new ordinary shares.
The company's shares were suspended on Sept 3 and it said it expects this to
be lifted today. It has called an EGM for Nov 15 to approve the acquisition and
placing plans.
Amerisur holds two oil and gas prospecting permits in Paraguay and is the
registered applicant for exploration and exploitation concession contracts over
the same permit areas. Bohemia holds registered applications for an oil and gas
prospecting permit in Paraguay and for an exploration and exploitation
concession contract over the same area.
The exploration areas covered by these three applications comprise a total of
approximately 48,000 square kilometres of the Curypayty and Parana Basins.
Chaco said these basins extend respectively into Bolivia and Brazil, where
commercial oil and gas production has been established for many years from
similar geological sections.

pth, The real pointer on this is that Wm de Broe, CHP's broker, has concistently been the highest MM on the bid. I don't think this is a case of being suckered onto a punch; they potentially have some very good news if the Colombian deals have been done. I am sure we are close to hearing that but this is the holiday season, there are time zones involved, so potential for slippage on timing. The other interesting part is that the price has recently always ended at its high for the day. I have bought two more chunks of stock today.

Sharesure, any idea whats delaying news?

Dibbles, Only the need to get the documentation around four countries and time zones. Today is bound to be a little testing on the sp as there will be folk who got in at the start of the week and have had a 33% rise and don't want to hold over a weekend. I bought two more chunks of stock yesterday at over 8p; obviously with hindsight and no announcement just yet it would have been better to buy today but when this news comes out, if my info. and calculations are right, this should immediately treble and then become a 12 bagger within 6 months; and that is just on Colombia. Paraguay would be in there for nothing.

Sharesure, thanks.
May take opportunity to top-up myself if daytraders take us lower.
No news is good news and all that.

Sharesure how come the spread is so narrow at the moment,any thoughts.

pisces, don't know.There are around 370m shares in issue and I think 8 MM's so this is a fairly liquid stock. The current shake out might be a touch un-nerving for some; I doubt the weakness will last the day. I think some news is likely to come out any time soon; whether it comes out before the weekend I can only guess. My money would be on sometime next week, but if it is as good as I reckon it could be then I wouldn't want to risk being out of it in case an RNS is suddenly released.

Hi SS - I have used the weakness to buy some more - thought I might have missed this opportunity.

Its ok, now they can release the RNS!!!

Baza

Baza, I wish they would!

Sharesure, it is good to see that your calculations match my own work.

I have come up with an immediate share price of around 26.5p using conservative figures once the expected news breaks.
Not only is this a cracking short term play for an immediate significant share price lift, but it has the added bonus of a 10fold+ return on your investment before Easter 2006.

One only has to watch the price action to know that a very big deal is due to be announced. I am however surprised that the less shrewd investor is still fooled by the pre-weekend shakeout. I would definately not be a seller at these levels.

May I add that WDBM has yet again made himself high bid, those that follow Chaco will know the significance of that.................

to buy or not to buy :?

Can drop to 4 - 5p if false rumour or could jump to 26p if rumour true.... grrrr
Pretty risky

sidtrix, You need to see what the company's brokers are doing. Mostly always higher on the bid these last few weeks; they'd be pretty stupid if they thought there was bad news around, chinese walls or not. And in my view they aren't stupid.

sidtrix

Risky - but a good risk/reward ratio by your own admission.

If 50% of the time you win and 50% of the time you lose money on your stock-picking, you need an average ratio upside to downside of at least 2 to 1, say, to make a profit. You can stop loss the downside, but cannot force upside to be always twice. So to up the odds in your favour, you only trade when the upside is 3 X the downside, for example.

Buy at 7.50p - risk, you lose 40% - reward you make a profit of 250% - pretty good ratio in excess of 6.

I'm even convincing myself I should be in! I remain intrigued by Sharesure's and MPH's numbers and the sense they know what they are talking about.

sd

Stockdog, surprised you aren't yet in this one. The weakness so far today is in my view all down to many, but mainly small, holdings being sold by folk who didn't want the carrying cost over a weekend. Also they will have made a profit this week.
The risk then is that this stock shows up on the chart of major movers for the week, and then gets picked up by the weekend press which would prevent getting back in again in early next week. A few of us who follow this stock closely believe an RNS on the Colombia position over CHP's TEA legislation applications is due very soon. Being out of the stock at this time risks quite alot in my view.

Cheers guys.....jumped in with a small holding :) hopefully this one will not get away from me like YOO and ARX did!

SS let them know that they can officially release the RNS now, I am waiting ;)

- Sid

Rn't we all !
Baza

Sharesure, thanks for your concern. I'm tempted for a short term trade - need to see what I'd have to dump to free up cash, having spent my last apre pennies on DGT's dip this morning.

Have a good weekend everyone.

sd

Sunday Telegraph, page 9 Business Section has picked up on Chaco's enormous potential in Colombia. Very timely. Given that an announcement from CHP this week looks highly likely, if anyone is thinking of adding to their holding, they'll need to be in the market early on monday morning. This should be an excellent week for Chaco.

ss,

I saw that too, shame they quoted us at 2p though!

cc

Sharesure, you've been saying every week for 3 or 4 weeks that CHP's Colombian RNS announcement was imminent. why is this week highly likely?

camlad

camiladasi, you were previously posting on the other bb that we are all idiots over here lapping up everything Sharesure has to say.
Whats your view on the news item this w/end?